Wintermute founder reveals insider information! The truth behind the crash on October 11 is exposed, retail investors must avoid these pitfalls to turn the tide!
Friends, the truth behind the crash in October is here! The founder of the crypto market maker Wintermute just revealed: this crash is a chain reaction of excessive leverage + a surge in perpetual contract products! What’s even more heartbreaking is that many institutions that played long and short hedges were instead "harvested" by the ADL mechanism, causing even professional players to fall into traps, and retail investors need to be especially cautious!
For us retail investors, it’s crucial to remember three points:
Don’t engage in complex strategies: The institution's long and short hedging may seem advanced, but it actually requires extremely strong risk control capabilities. Some friends previously learned from institutions about hedging, only to be caught in a double bind, losing six months' profits;
Leverage is a double-edged sword: The increase in perpetual contract products means more opportunities, but the volatility is also more intense. Always remember to invest with spare money, and don’t let your position exceed 20% of your principal;
Focus on fundamentally strong coins: Those that resist declines in crashes are often assets like BTC and ETH, which have actual ecological support.
The more complex the market, the more we must return to basics! Don’t be misled by flashy strategies; steady and steady progress is the key to longevity.
Did you profit or get hit during that crash?
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